The NZ dollar traded at its lowest level against the Australian dollar since November, and has fallen more than 2 per cent since the start of 2017 as it broke out of a key trading range.

The kiwi traded at A94.77 cents at 5pm Tuesday down from A94.81c on Tuesday and A95.38c on Monday.

It had reached as high as A96.74c on January 3. Currency traders said the move reflected the different markets Australia and New Zealand have with China, with Australia benefiting from a resurgence in the price of iron ore off the back of Chinese demand.

However the Australian government has suggested the high price is unlikely to be sustained, and mining companies have been wary about ramping up capital spending in case demand falls.

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The kiwi fell against the British pound to 57.46p from 57.84p on Tuesday. It fell to 4.8432 yuan from 4.8741 yuan. It dropped slightly to 81.12 from 81.17 and was flat at 66.30c.